THE ESKOM FILES | Fire, sabotage, and Treasury delays drove up Eskom’s Majuba Rail costs from ‘R108m to R6.5bn’

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Workers working on the Majuba railway line near the power station.
Workers working on the Majuba railway line near the power station.

National Treasury’s office of the chief procurement officer took 111 days to respond to an urgent deviation request filed by Eskom to appoint a key contractor on the beleaguered Majuba Rail Project – potentially saddling the power utility with hundreds of millions of rands in extra costs. 

At the time of the application on 11 June 2020, it was estimated the project – to finish work on an extensive upgrade of the coal offloading facilities at Majuba Power Station near Volksrust, Mpumalanga that started in 2017 - could be completed in five months at a cost of R108 million. 

It took a little more than four months for Treasury to approve the deviation to appoint Tenova Mining and Minerals on a single source basis – after denying the request twice.

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